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SAN JOSE, Calif., Dec. 5, 2001 (Nasdaq: ADBE)Adobe Systems Incorporated, the leader in network publishing, today announced it has acquired privately-held Fotiva, Inc., of Santa Rosa, Calif. Fotiva develops digital photography software solutions to help consumers manage, store, enrich, and share digital photographs. The acquisition supports Adobe's strategy to provide customers the best complete solution for editing, enhancing and managing images in order to document and share experiences. Financial details of the acquisition were not disclosed.

"The rapid transition to digital photography has created a need for image-management solutions that help people organize and share their collections of digital photos," said Bryan Lamkin, senior vice president of Adobe's Graphics Business Unit. "Adobe is focused on improving the complete digital photography experience for this growing market. The acquisition of Fotiva will let us deliver strong image management solutions that complement our industry-leading image editing product line, which today includes Adobe Photoshop®, Photoshop Elements and PhotoDeluxe®."

Fotiva's development efforts are focused on an end-to-end solution enabling consumers to manage and share a lifetime of digital photographs. Through the combination of Fotiva's technology and Adobe's strengths in digital imaging, layout and ePaper, Adobe plans to deliver a dramatic improvement over first-generation, Web-centric solutions and hobbyist-oriented software.

"With the dramatic increase in digital camera sales, consumer demand is extremely high for a digital imaging solution that simplifies the process of managing photos, sharing them via email, printing them at home and using online photo sharing services," said Alexis Gerard, president of Future Image, a digital imaging research and consultancy firm. "With this acquisition, Adobe is in a position to simplify and improve consumers" digital photography experiences, develop new imaging technologies that will foster the growth of the imaging market and, ultimately, benefit all users."

"The Fotiva team is thrilled to join forces with Adobe, a leader in digital imaging" said Michael Slater, co-founder of Fotiva. "Through this acquisition, we now have the resources to deliver even more fully on our vision of making digital memories a fun and valued part of everyone's life."

Fotiva was founded in February 2000 in Santa Rosa, Calif. Prior to October, 2001, the company operated as PhotoTablet, Inc. Before the acquisition, Fotiva was primarily funded by the venture firm New Enterprise Associates 9 L.P. (NEA). Fotiva employees joining Adobe will become part of AdobeÍs Graphics Business Unit.